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- Trump on Tuesday called on the independent Federal Reserve to slash borrowing costs and inject cash into the economy.Â
- Trump has increasingly pressured the Federal Reserve to take steps to juice the economy ahead of his bid for re-election in 2020.
- Economists and investors widely view independence from political influence as essential to a healthy central bank.Â
- Visit Business Insider’s homepage for more stories.
President Donald Trump renewed his criticism of the Federal Reserve on Tuesday, calling on the independent central bank to slash borrowing costs and inject cash into the economy.Â
“Would be sooo great if the Fed would further lower interest rates and quantitative ease,” the president wrote on Twitter, referring to a program that injected trillions of dollars into the financial system after the Great Recession a decade ago.Â
Trump has increasingly pressured the Federal Reserve to take steps to juice the economy ahead of his bid for re-election in 2020. The White House has separately sought to place political allies at the top of the policy-setting Federal Open Market Committee.
Economists and investors widely view independence from political influence as essential to a healthy central bank.Â
The FOMC lowered interest rates three times this year as it sought to insulate the economy from trade tensions and a global slowdown in growth.Â
But with a historically strong unemployment rate and solid consumer activity, policymakers have signaled they saw no immediate need for further stimulus measures. Last week, they left interest rates unchanged and predicted there would be no cuts in 2020.
Trump also expressed frustration with the strength of the dollar on Tuesday. A weaker currency, which is influenced by interest-rate levels, can make American products relatively cheap abroad.
“The Dollar is very strong against other currencies and there is almost no inflation,” he added. “This is the time to do it. Exports would zoom!”
